Exhibit 11 Horace Mann Educators Corporation Computation of Net Income per Share For the Three Months Ended March 31, 1997 and 1996 (Amounts in thousands, except per share data) Three Months Ended March 31, ------------------- 1997 1996 ------- ------- Primary - reported: Weighted average number of common shares outstanding during the period 23,665 23,424 ------- ------- Net income for the period $19,400 $15,433 ------- ------- Net income per share - assuming no dilution $ 0.82 $ 0.66 ======= ======= Primary: Weighted average number of common shares outstanding during the period 23,665 23,424 Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities: Warrants 123 117 Stock options 346 324 Common stock units related to Deferred Equity Compensation Plan for Directors 10 - ------- ------- Total common and common equivalent shares 24,144 23,865 ------- ------- Net income per share $ 0.80 $ 0.65 ======= ======= Percentage of dilution compared to reported net income per share 2.4% 1.5% Fully diluted: Weighted average number of common shares outstanding during the period 23,665 23,424 Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities: Warrants 123 117 Stock options 356 324 Common stock units related to Deferred Equity Compensation Plan for Directors 10 - ------- ------- Total common and common equivalent shares adjusted to calculate fully diluted earnings per share 24,154 23,865 ------- ------- Net income per share - assuming full dilution $ 0.80 $ 0.65 ======= ======= Percentage of dilution compared to reported net income per share 2.4% 1.5%